Lululemon sales surge as demand for workout gear continues
Lululemon reported stellar performance for the second quarter of 2021 with revenue increasing 61% compared to last year.
While many stores were closed in Q2 last year during the pandemic, sales increased 28% on a two-year compound annual growth rate (CAGR). Company-operated store revenue increased 9% and e-commerce revenue increased 66% on a two-year CAGR basis.
Calvin McDonald, CEO of lululemon, shared that the company is on track to exceed revenue targets made for 2023 by the end of this year, a full two years ahead of plan. McDonald said, “We achieved these results based on our performance before, during and emerging from the global COVID-19 pandemic. The company will likely achieve the goal to double its men’s business by the end of this year and remain on track to quadruple the international business by 2023.”
Shares rose 13% to $430.62 after the company also posted better-than-expected quarterly results. Investors traded more than $500 million worth of shares after the bell, according to Refinitiv data.
Sportswear makers saw strong demand over the past year as people worked out at home during the COVID-19 pandemic, spurring sales of Lululemon and other athletic wear makers, including Nike and Under Armour.
Lululemon forecast full-year adjusted earnings per share to be between $7.38 and $7.48, compared with the average analyst estimate of $6.91.